In recent years, many cities have enacted strong anti-predatory lending ordinances in the face of state and national inaction.  At least that's a start, right?  Well, maybe not if state judges have anything to do with it.

According to the Center for Responsible Lending, 28 states have enacted anti-predatory lending laws to curb some of the most common abuses of mortgage lenders -- like charging undisclosed fees three to five years after a mortgage (prepayment penalties), or bleeding a home owner's equity by charging high fees in repeated refinancings (flipping).  North Carolina accelerated reform efforts with its 1999 anti-predatory lending law, which inspired similar reform in Massachusetts, New Jersey, New Mexico, New York, Rhode Island, and elsewhere.

Nonetheless, 22 states still leave their homeowners remarkably unprotected from abuse, and Congress too has failed to stand up to predatory lenders.  In the 109th Congress, Reps. Brad Miller (D-NC) and Barney Frank (D-NC) were unsuccessful in their effort to enact the North Carolina reforms federally by introducing the "Prohibit Predatory Lending Act" (H.R.1182).

So how have local governments responded to this abdication of responsibility from state and federal officials?  For starters, many city councils -- including those in Chicago, Detroit, Los Angeles, New York, Philadelphia, and Washington, D.C. -- have stepped in and enacted anti-predatory lending ordinances of their own.

At least that's a start, right?  Well, maybe not:

• Two weeks ago, the Ohio Supreme Court ruled that Cleveland's anti-predatory lending laws are unconstitutional.
   
• Last week, a Maryland Circuit Court Judge held that the Montgomery County Council exceeded its authority by taking on predatory lending.

Bob Ney (R-Off-to-Prison) failed in his attempt to preempt state anti-predatory lending laws in the 109th Congress (H.R.1295), but state judges seem to be comfortable preempting local ordinances.  As Maryland Judge Mason noted, "The court can and will take notice that the mortgage loan industry is a national, if not an international business," and should not be subject to different laws in every county.

Whether Judge Mason is right or wrong, this is just another reason why it's time for Congress to step in and protect America's homeowners.